Transcript Document
The economic situation of
the automotive industry
Brno, 5 June 2009
Ivan Hodac
Secretary General
I. Current economic situation (1)
Vehicle Production
Europe
World*
2007:
19.7 million
2007: 69 million
2008:
18.4 million (-7%)
2008: 63 million
4th quarter 2008: -26%
1st quarter 2009: -37%
2009: 55 million**
Forecast Europe 2009:
Passenger cars: 11.9 million (-25%)
Commercial vehicles: 1.2 million (-50%)
*Source: Global Insight
** ACEA remark: forecast very optimistic
I. Current economic situation (2)
PC registrations
Europe
2008:
Q4 2008:
Q1 2009:
April 2009:
Czech Republic
14.7 million (-8.0%)
-20.0%
-17.2%
-12.2%
0.14 million (+8.4%)
+2.4%
-5.9%
+19.0%
CV registrations
Europe
Czech Republic
2008:
2.4 million (-8.9%)
4th quarter 2008: -23.9%
1st quarter 2009: -35.4%
0.07 million (-3.8%)
-30.0%
-40.1%
April 2009:
-69.9%
-40.3%
NOTE: Vehicle production figures differ from registration figures because
part of the European production is exported outside the EU
registrations in the EU include vehicles imported from outside the EU
II. Industry demands to the EU in the
economic crisis
Safeguard level playing field
More coordination of support measures
Framework conditions
Avoid unnecessary administrative burden
Respect better regulation
Access to finance
Solve problem of access to finance for OEMs and suppliers
Stimulate demand
More fleet renewal measures needed
Social adjustment
Make use of European funds
III. National government support measures:
examples (1)
Germany
Fleet renewal scheme: € 2 500 for scrapping old car and
buying one <1 year old
Tax exemption for cars >Euro4
€ 500 million for R&D on alternative powertrains
France
Fleet renewal scheme: € 1 000 for scrapping old car
and buying new one; can be combined with CO2 bonusmalus system
€ 6.5 bn state loans to manufacturers
€ 2 bn re-financing facility for automotive financing
companies
Fund for the modernisation of the supply chain
III. National government support measures:
examples (2)
Spain
€4 bn government support for the automotive sector (“Plan
Integral del Automovile en Espana”)
€680 mil to be used for loans to manufacturers and
suppliers in production facilities
€120 mil support for R&D investment and training
€10 mil for electric vehicles pilot programme
€950 mil investments in improving transport by road, rail
and sea
About €650 mil financing facilities for automotive SMEs
New fleet renewal scheme: €2 000 for scrapping old car and
buying new one or used car maximum 2 years old
III. Fleet renewal schemes in the EU
UK: £2 000
> 10 years
£300 Mn
10 months 2009-10
F: €1 000 + staggered tax
rebate up to € 5 000
> 10 years
New car max 160 gCO2/km
(staggered)
€220 Mn
IRL
1 year 2008 – 2009
P: €1000/1250
> 10 years, >15 years
New car max 140 gCO2/km
1 year 2009, extension?
P
NL: €750-1 000 cars
€750-1 750 LCVs
> 13 years (petrol)
> 9 years (diesel)
€65 Mn
2009 – 10
D: €2 500
further tax rebate for Euro 5/6 cars
> 9 years
Min Euro 4, max 1 year
€1.5 Bn
1 year 2009
FIN
S
N
EST
LV
LT
DK
UK
F
NL
D
B
L
CZ
CH
A
PL
SLO
E
I
A: €1 500
> 13 years
New car min Euro 4
€45 Mn
9 months 2009
RO: €1 000
> 10 years
Max 60,000 vehicles
11 months 2009
SK
H
RO
HR
BG
L: €1500/1750
> 10 years
New car max 150 gCO2/km
1 year 2009
TR
GR
CY
E: Plan 2000E: €2 000
Plan VIVE: interest free loan (€10 000 max)
> 10 years, or 250,000 km
car max 5 years, max 140 gCO2/km
1.5 years 2008 – 2010
I:
M
€1 500 – 3 000 cars
€2 500 – 6 500 LCVs
> 9 years
New car max 130-140 gCO2/km
11 months 2009
SK: €2 000
> 10 years
€22.1 Mn
9 months 2009
Campaigns
underway
Discussions
IV. Support measures at EU level (1)
The EU and the Commission lack instruments
and powers…
for financial support (small EU budget, use very
restricted)
for other incentives, such as tax incentives
… and could do more on regulation
Consider high cost of regulation on automotive industry
Respect for better regulation and use of impact
assessments
Follow Competitiveness Council conclusions
IV. Support measures at EU level (2):
29 May Competitiveness Council
Regulation
Simplify legislation, reduce administrative burden
Utmost caution with new legislative measures
Impact assessment and cost-effectiveness analysis,
including non-regulation options for all new
legislative and non-legislative proposals
Impact assessments to reflect economic situation
Compliance with new requirements should not cause
excessive costs to businesses
European funding
More effective use to be made of the instruments of the
EIB and of the Structural Funds
IV. Support measures at EU level (3):
Finance and demand
European Investment Bank: Clean Transport Facility
Loans for investment in fuel-efficient and clean technologies
About € 7 bn will become available in 2009
Good start, but more funding will probably be needed
Stimulate demand
Fleet renewal schemes in 12 countries (scrapping, tax measures)
help bridge downturn (production, employment)
Additional measures needed for commercial vehicles
(public procurement, renewal of bus fleet, investment in
infrastructure)
IV. Support measures at EU level (4): Social
adjustment
European Globalisation Adjustment Fund
for job search assistance
Adopt new rules quickly
Do not to establish additional criteria (bankruptcies, closures of
production sites)
European Social Fund
for training and retraining
significant resources, but lack of transparency and complex
procedures
Make use of the instruments available
at European level
V. Conclusions
The industry
faces the biggest downturn in recent history
remains viable in the long term
needs quick, short-term support for financing, stimulating
demand and social adjustment
What the EU and Member States can do
Framework conditions: Scrutinise new and existing
regulation regarding better regulation, avoiding
unnecessary administrative burden
Roadmap of envisaged legislative and non-legislative
initiatives
Access to finance: increase EIB funding
Demand stimulus: Fleet renewal schemes
Use European Globalisation Adjustment and Social Fund
Backup I: Fleet renewal schemes
Country
Incentive
Vehicle age
Duration
Austria
€ 1,500
> 13 years
01.04.200931.12.2009
France
€ 1,000
> 10 years
04.12.200831.12.2009
Germany
€ 2,500
> 9 years
14.01.200931.12.2009
Italy
€ 1,500-5,000
(cars)
€ 2,500-6,500
(LCVs)
> 9 years
07.02.200931.12.2009
(registration
until
31.03.2010)
€ 1,000 (petrol)
€ 1,250 (diesel)
> 10 years
> 15 years
01.01.200931.12.2009
Romania
€ 900 approx.
> 10 years
01.02.200931.12.2009
Spain
Interest-free
loan up to €
10,000
(Plan VIVE)
> 10 years or
> 250,000 km
01.12.200801.10.2010
€ 2,000
(Plan 2000E)
> 10 years
(purchase new)
> 12 years
(purchase
used)
Portugal
Country
Incentive
Vehicle age
Duration
Luxembourg
€ 1,500-1,750
> 10 years
22.01.2009 –
01.10.2010
Cyprus
€ 675 - 1,700
> 15 years
Ongoing
Slovakia
€1,000-1,500
> 10 years
09.03.2009 25.03.2009
€ 2,000
> 10 years
06.04.200931.12.2009
€ 750 – 1,000
€ 1,000- 1,750
> 13 years
> 9 years
2009-2010
Exact date
TBD
The
Netherlands
18.05.2009
Backup II: Vehicle production
Czech Republic and Skoda
Vehicle Production
Czech Republic
Skoda
2007: 0.94 million
2007: 0.62 million
2008: 0.95 million (+0.9%)
2008: 0.60 million (-3.1%)
Q4 2008: 0.20 million (-22.5%)
Q4 2008: 0.11 million (-39.0%)
Q1 2009: 0.21 million (-23.0%)
Q1 2009: 0.10 million (-45.5%)